Best prospects come to underwriters prepared to travel

From a general liability perspective, Marketform has seen some good business flows from Mexico and Peru and is starting to see more opportunities from countries such as Ecuador, Uruguay and Argentina, says Rupert Taylor, head of general liability and multi-line product development for Marketform.

“The most growth potential is available to those underwriters, like my colleagues, who are willing to travel to all countries in Latin America to look for and develop opportunities,” he said. “We believe that meeting people in person, in their region, sends a powerful message of support and is behind our strong attendance at the FIDES conference across a number of classes.”

There are always going to be challenges as countries, economies and markets evolve, he added. These could be claims challenges faced by reinsurers due to the strict timelines in which to respond to a claim (which reinsurers can fall foul of due to a lag in information transfer), or the difference in legal interpretation of terminology, or economic factors such as volatile exchange rates, or high interest rates applied to the initial claim. There will always be both threats and opportunities in the market for Lloyd’s managing agents and company market participants.

“As insurance sophistication increases along with bodily injury awards, the need for greater transfer of exposure to reinsurance in the London market will become a more important option,” Taylor said.

Returns on capital remain strong in some parts of the insurance sector, but increasing appetites being driven globally will remain a challenge in terms of increased competition in the coming year, he continued.

“However, with conferences such as FIDES and underwriters travelling to the territory, I remain confident that new mechanisms and new products can be brought into the Latin American market to a greater degree. By working in conjunction with local markets, we can provide support for the developing exposures and demand.”